It represents a return equivalent to about 13% if paid out to shareholders. The loss of $37M in revenue represents 20% to total revenue in the last 12 months. Given they expect no impact to profit from 1 July 23 onwards, we will incur these costs in the next few months. This also suggest that this segment of the business contributed no profit to the group in the last 6 months anyway. This will increase margin and hopefully allow focus onto profit generating segments. It seems like prudent action by management.
SHM Price at posting:
73.0¢ Sentiment: Buy Disclosure: Held
